DEF Manufacturing is evaluating whether to keep producing a component in-house or to outsource it. The following information is available:

• In-house production: Fixed costs $150,000, Variable costs $50 per unit
• Outsourcing: Fixed costs $80,000, Variable costs $70 per unit

Requirements:

1. Calculate the total cost of producing 3,000 units in-house and outsourcing.
2. Determine whether DEF Manufacturing should continue to produce in-house or outsource based on total costs.
3. Discuss the concept of relevant costs in decision-making for DEF Manufacturing.
4. Analyze the qualitative factors that DEF Manufacturing should consider in its outsourcing decision.
5. Evaluate the financial implications of outsourcing on DEF Manufacturing's profitability.